Crunching the Numbers: Could Door Dash Restaurant Fees Be Costing You More Than You Think?

If you're wondering whether to choose DoorDash as your delivery partner, you've come to the right place. The popularity of DoorDash isn't just because of its sheer convenience — it's the treasure trove of features that come with it.

DoorDash can handle delivery, yes, and it also gives you access to a vast pool of frequent buyers, helps market your restaurant, and amplifies your online presence (and so much more). All you have to do is focus on cooking great food!

But with great power comes the inevitable question: How much does DoorDash cost? You must navigate a maze between commission tiers, delivery fees, and service charges to get a definitive answer. Don't stress, though — we've got the map to guide you through it. 

In this detailed guide, we'll dish out the details and uncover the breakdown of delivery fees, service charges, and all the extra ingredients that make up your total.

Overview of DoorDash's Pricing Structure

A common question is: How much does DoorDash charge for delivery? But what some don't think of are the multiple layers to the 'one' price they pay. Customers often see a delivery charge, but what comes with it are small order fees, peak hour/surge fees, service fees, Dasher tips, and taxes. 

What do restaurants pay for? 

• Platform commission - To connect you with customers outside your regulars
• Delivery fee - For the convenience it offers
• Advertising - For the opportunity to advertise to a loyal DoorDash customer pool
• Dash Pass fees - Access to Dash Pass customers exclusively through the Premier/Pro plan, attracting frequent buyers who enjoy waved delivery fees and minimum order requirements.These customers who ideally spend more become a valuable asset. Whereas with a basic plan, you miss out on Dash Pass customers, limiting the potential to capture high order values and repeat business. 

These are the charges that you and your customer may choose to pay. Now, let's compare competitors, consider how much it costs to use DoorDash, examine its pricing structure, and determine the factors influencing it. 

Bonus: We'll also tell you how to cut down on a few costs! 
Unwrapping DoorDash's Price Plan

Let's start with the pricing plan. DoorDash offers various restaurant pricing options, from simple delivery fees to more detailed commission-based models. This is how much DoorDash costs a restaurant per month, based on commissions and marketing support: 

Basic: 

• 7-day free trial
• Commission fee per order: 15%
• Pickup fee per order: 6% 
• Storefront (a feature that lets your restaurant offer delivery on your website with zero commission)  processing fee: 2.9% + $0.30

Best - Suited: The basic plan can be a great option if your restaurant is just starting with delivery or if you run a small cloud kitchen without the budget for a premium plan. It lets you dip your toes in before committing to an upgrade. But one thing to keep in mind is, customers on the basic plan incur the highest delivery fees, which can discourage repeat orders and negatively impact the restaurant’s long-term customer retention and reputation, including dine-in business.

Example: 

Approx. Value of One Order = $50

Approx. Number of orders in a Day=10

Total = $500

15% Door Dash Commission = $75/Day

                                                     $2,250/ Month

                                                     $ 27,000 / Annum

Plus the processing, listing, and pickup commission fees

Plus: 

• 30-day free trial
• Commission fee per order: 25%
• Pickup fee per order: 6% 
• Storefront processing fee: 2.9% + $0.30
• It gives you access to DashPass customers

Best-Suited : This option is ideal when you're looking to tap into a fresh pool of Dashpass customers and boost the experience for regulars with online delivery.

Example: 

Approx. Value of One Order = $50

Approx. Number of orders in a Day=10

Approx. Total Online order Value = $500

25% Door Dash Commission = $125/Day

                                                   $3,750/ Month

                                                   $ 45,000 / Annum

Plus the processing, listing, and pickup commission fees

Premier: 

• Commission fee per order: 30%
• Pickup fee per order: 6%
• Storefront processing fee: 2.9% + $0.30
• DashPass customer pool access 
• Growth guarantee

Best-Suited: You can pick this if your sole goal is to maximize sales and go all in. The additional growth guarantee assures you a minimum of 20 orders per month or refunds your monthly commission charge. 

Example: 

Approx. Value of One Order = $50

Approx. Number of orders in a Day=10

Approx. Total Online order Value = $500

30% Door Dash Commission = $150/Day

                                                   $4,500/ Month

                                                   $ 54,000 / Annum

Plus the processing, listing, and pickup commission fees

The Premier plan includes a growth guarantee that if the restaurant receives fewer than 20 orders per month, Doordash will refund the monthly commission charge, providing a safety net for restaurants choosing the plan. 

Pro Tip: If you're new to this game, opt for a mid-tier plan. That way, you can test, analyze and expand when you access new customers. 

To truly understand the cost-benefit equation of partnering with DoorDash, you must thoroughly study its comprehensive pricing model and how it directly affects business operations.

Breaking Down the Core Fees on DoorDash

These pillars hold up the overall cost you pay DoorDash for its unmatched features. Let's tear each pillar down.

Delivery Fee: 

This is based on several aspects of the order, like location, time, and order size. Your customers pay this along with the food they purchase from you. At times, a delivery fee may be waived through a promo code your restaurant has partnered with DoorDash to offer. This can help drive repeat orders and increase sales, particularly during peak hours.

Commission Fees: 

The commission fees charged by DoorDash can eat into your restaurant’s profitability, especially when it comes to in-house sales like direct takeaways. With commission rates ranging from 15% to 30%, restaurants face reduced margins on every order placed through the platform. This fee structure often makes third-party delivery services less profitable compared to in-house orders, where no commission is deducted.

To offset these costs, many restaurants raise menu prices, which, while covering the commission, can make their offerings less competitive. This price hike can prompt customers to opt for direct takeaways, where they avoid delivery fees altogether. In the long run, a heavy reliance on DoorDash can shift customer behavior, leading to fewer in-house sales as customers weigh the added cost of delivery against the convenience it offers.

This is a percentage of the subtotal of an order placed for your restaurant through the DoorDash marketplace. Depending on your DoorDash plan, it typically ranges from 15% to 30%. The commission fees charged by DoorDash can eat into a restaurant’s profitability, especially when it comes to in-house sales like direct takeaways. With commission rates ranging from 15% to 30%, restaurants face reduced margins on every order placed through the platform. 

This fee structure often makes third-party delivery services less profitable compared to in-house orders, where no commission is deducted. To offset these costs, many restaurants raise menu prices, which, while covering the commission, can make their offerings less competitive. This price hike can prompt customers to opt for direct takeaways, where they avoid delivery fees altogether. In the long run, a heavy reliance on DoorDash can shift customer behavior, leading to fewer in-house sales as customers weigh the added cost of delivery against the convenience it offers.

Service Fees: 

This covers DoorDash's operational costs, such as platform maintenance, customer support, and payment processing. It ranges anywhere from 10% to 15% of the order subtotal. The fee applies to most orders placed through the platform. This doesn't directly impact the restaurant but can make customer orders expensive. 

Additional Fees: 

This fee includes the marketing and activation charges you choose. You pay DoorDash a price to advertise and display your restaurant as a top option. This can be sponsored listings, discounted promotions or DashPass subscriptions. You may also have to pay an integration fee and a fee for the POS hardware (like tablets or mPOS) you rent from DoorDash. 

Hint: To avoid these charges, an online ordering system like Restolabs can be utilized, allowing integration with multiple partners to retain more profits. Read more here.

These charges can seem scary, but most can be balanced with the features you can benefit from. You can boost your customer base, create widespread brand awareness, and grow your business online. It all comes down to choosing the right plan. We are going to help you out there as well!

Calculating the Total Cost of an Order

You need to play your cards right here. We've deconstructed the calculation for you. Here is a sample scenario and a detailed breakdown of the costs of a $50 order for a restaurant on the Basic Plan.

We'll look at both what the restaurant pays and what the customer is charged. Let’s say your restaurant processes an order worth $50, DoorDash takes a 25% commission  along with a $2.00 sponsored listing fee to improve visibility on the platform. This results in a total payout of $14.50 to DoorDash. Simply put, your restaurant lost nearly 30% of its overall revenue. 

Restaurant Charges Breakdown

Amount

The total value of the customer's order 

$50.00 

Doordash’s commission @ 25% 

$12.50

Sponsored Listing Fee 

$2.00

Total Payout to Doordash

$14.50

Net Revenue for the Restaurant after deducting Doordash fees 

$35.50

Now, let’s see how they charge the customer. 

Customer Charges Breakdown

Amount

The total value of the customer's order 

$50.00 

DoorDash Delivery Fee

$6.00

DoorDash Service Fee

$7.50

Door Dash regulatory response fees

$1.00- $5.00

Tips

$10

Doordash’s total Charge to Customer

$74.50  

*(Taxes is not included in the total price)

While you make $35.5 from a $50 value order, DoorDash makes $39.00 ($ 14.5 from the restaurant + 24.5 from customers) 

4 Factors That Influence the Total Order Cost

Convenience always comes with a price, and here are the primary factors influencing DoorDash charges: 

Order Size and Complexity

DoorDash commissions are based on the order subtotal - for a $100 order, you pay a commission of 15% to 30 %, depending on your membership plan. Larger orders mean higher commissions. The complexity of the order is one significant aspect to consider. 

Delivery Area and Time of Day

Long-distance orders charge a high delivery fee. This cost indirectly affects your restaurant through customer ordering behaviors and order volume. Surge and peak hour charges can demotivate even regular customers. When they see a fee as equal to the item cost, they will most likely abandon the cart. 

Restaurant Type

High-demand restaurants or cuisines can increase orders with DoorDash, which could justify the commission fee. Independent restaurants could suffer from the pricing. Niche or specialty restaurants could also be affected by the high cost per item and commission charges.  

Pricing Plan

Here is where you make the smart move.Your chosen membership plan directly affects commission, service fees, and marketing charges, influencing pricing strategies across the platform. Additionally, the platform's algorithm penalizes restaurants that list higher menu prices on DoorDash than in-store, forcing restaurants to ensure price consistency across all channels.  

Setting a budget, testing, and upgrading as you grow is always safe.  You've read everything you need to know about how much DoorDash costs.

Bonus -Tips to Manage and Reduce DoorDash Fees

Optimize Delivery Zones: 

Do an in-depth customer demographic analysis before selecting your restaurant's delivery radius. A shorter distance means a lower delivery charge and more sales.  

💡Pro tip: Focus on densely populated areas to reduce delivery fees and time.

‍Dynamic Surge Pricing Adjustments

Leverage DoorDash's pricing models to adjust strategically for peak times or special events. When the platform charges a customer surge fee, you give them a discount that balances out their cost. It is not simple to do this; you might end up spending from your profit, but it could lead to customer loyalty. 

💡ProTip: Use surge discounts wisely to boost customer retention without sacrificing too much profit.

Utilize DoorDash Marketing Tools 

One significant benefit of using DoorDash is its marketing model. Focus on ROI-driven campaigns and target them based on customer behavior. Use sponsored listings to increase visibility during peak hours. Offer limited-time promotions - 'Buy one burger get nuggets for free'. Align marketing strategy with seasonal campaigns. Monitor your analytics dashboard religiously. 

💡Pro Tip: Offer free delivery on high-value orders, leading to an increase in sales.  

Cover Fees with Smart Pricing Strategy 

Adjusting menu prices to account for DoorDash's fees without alienating customers. Use innovative markup strategies to balance competitive pricing with covering delivery-related costs.

💡ProTip: Create value bundles (e.g., "Meal for Two") with a slight price increase to absorb DoorDash fees while offering customers a perceived deal. This boosts order value without losing competitiveness. 

Is DoorDash the Right Choice for Your Restaurant?

We are sure you understand how much DoorDash costs and why you pay that price by now. Let's recall—it gives you access to a customer base you never knew existed, establishes a bang-on online presence, and stabilizes revenue. 

While choosing DoorDash is the right move, implementing an online ordering system like Restolabs is crucial. It converts newly discovered DoorDash customers into loyal, commission-free regulars through your direct ordering platform. Restolabs is a takeout and delivery service-integrated online ordering system that helps restaurants avoid commissions. 

And, when it comes to running a profitable restaurant, having control over your operations is key. Restolabs offers a solution that goes beyond just customer acquisition and delivery services. 

• Take full ownership of your customer insights, empowering you to build stronger relationships and tailor marketing efforts, all while avoiding reliance on third-party platforms.
• The cost of a direct ordering platform like Restolabs can be close to what you pay in commissions to DoorDash in just one day. More value for less!
• Easily integrate loyalty programs to encourage repeat business and reward your customers.
• Choose from multiple delivery partners, providing flexibility and control over your delivery operations.
• The Dine-In QR code ordering is included in the price, while DoorDash charges an extra $50 for this service.
• Easily integrate with various payment processors and POS systems, with a willingness to customize the process according to your needs.
• Effortlessly manage your menu, orders, and inventory, streamlining operations and saving valuable time.
• With extensive integrations, Restolabs allows you to tailor your system to your specific business needs, from delivery partners to payment solutions.

Why opt for one when you can have so much more? DoorDash is great for visibility and attracting new customers, but the real benefits are seen when it's combined with a direct ordering platform. DoorDash can be used for discovery, while customer retention can be handled through your own system—avoiding commission fees. This approach allows more control over profits and customer relationships, ultimately leading to better margins and sustainable growth.Intrigued about what we at Restolabs can do for you? Book a demo with us now and get started!